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Broker Stocks Drop After Labor Secretary Says Fiduciary Rule Will Take Effect June 9

  • Nomura Instinet cuts Stifel’s rating as DOL opts not to delay
  • Some analysts still expect rule to be softened down the road
Updated on

Companies with exposure to the fiduciary rule, including Stifel Financial Corp., LPL Financial Holdings Inc. and Primerica Inc., fell after Labor Secretary Alexander Acosta wrote a Wall Street Journal op-ed saying the measure will take effect June 9 with no further delay. 

Analysts said that’s a blow to broker-dealers, asset managers and insurers, which had been lobbying Acosta and the White House to keep delaying the rule while rewriting it. Now the industry will have to absorb the heightened arbitration and legal risk it had hoped to avoid after President Donald Trump’s election in November, Capital Alpha Partner’s Charles Gabriel wrote in a note.